## **The Khayaal Theatre Company**
**Charity No. 1100005**
**Company No. 03597083**
**Trustees' Report and Unaudited Accounts**
**31 July 2022**
**The Khayaal Theatre Company Contents**
||Pages|
|---|---|
|Trustees' Annual Report|2 to 11|
|Independent Examiner's Report|12|
|Statement of Financial Activities|13|
|Summary Income and Expenditure Account|14|
|Balance Sheet|15|
|Statement of Cash flows|16|
|Notes to the Accounts|17 to 22|
|Detailed Statement of Financial Activities|23 to 24|
Page 1
**The Khayaal Theatre Company Trustees Annual Report**
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 July 2022.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Company No. 03597083**
## **Charity No. 1100005**
## **Registered Office**
42 Alexandra Avenue PO Box 2523 Luton LU3 9BN
## **Directors and Trustees**
The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:
R. Mughal
S.H.H. Naqvi
F. Qureshi
G. Virani
## **Company Secretary**
L.A. Ali
## **Accountants**
Sabat Accountants Ltd t/a Seymour King Suite G1
Hartsbourne House Delta Gain Watford WD19 5EF
## **OBJECTIVES AND ACTIVITIES**
The objects for which the company is established are to promote, maintain, improve and advance public education particularly through the research, development, production and performance of drama and theatre inspired by and adapted from Muslim literature and the wisdom literature of other faith traditions.
The company's activities typically include touring stage performances (Theatre-without-Walls), running drama workshops, devising and running theatre-in-education programmes, publishing children's books, training, advocacy and consultancy.
Page 2
**The Khayaal Theatre Company Trustees Annual Report**
## **ACHIEVEMENTS AND PERFORMANCE**
As the pandemic conditions of the past 16 months continued to subside, we continued to transition back to the physical delivery of Theatre-without-Walls’s on demand, small-scale and high quality and impact offerings for our multi-sector partners across the country. This transition was made possible by the continued support of the DCMS/Arts Council England Cultural Recovery Fund through the first round of Emergency Resource Support (ERS). We also continued to serve virtual audiences globally with our catalogue of short films (via YouTube, Vimeo, Alchemiya and our social media channels) created during the height of the pandemic in 2020-21 and online performance events using Zoom. Working in this hybrid way proved as demanding as it was gratifying and in many ways the pandemic served to help us fulfil longstanding aspirations to reach wider audiences beyond borders.
Over the period August-December 2021, we delivered 6 online performance events and 15 physical touring events comprising 25 performances/workshops and 10 offerings benefitting national and international audiences numbering 3000 mostly with new partners across six sectors (academia, community, culture, faith/interfaith, education and charity).
The highlights of this period were our successful debut at Cheltenham Literature Festival where we regaled lively and super enthusiastic audiences of primary school children (ages 5-6) with comic tales from our award-winning book for children, ‘Riding a Donkey Backwards’ and our online streaming event with Institute of Business Administration (IBA) Karachi where we shared our acclaimed ‘Edhi Means Love’ film telling the inspiring story of the peerless Pakistani humanitarian of the 21st century and Nobel Prize nominee, Abdul Sattar Edhi.
“Having two performers worked really well and the interactive qualities and humour throughout kept our young audience enrapt.” – Loraine Evans, Cheltenham Literature Festival
“… The script is so engaging and inspirational. As discussed in the panel discussion, preparing this screenplay in other part of the world proves the universality of Edhi sb. Thank you for this.” – Dr Asma Hyder, IBA Karachi
Other partners over this five-month period included Muslim Charity Forum, Iqra Book Festival, Council for World Mission, Cambridge University, Muslim Institute, Newham Borough Council, Luton Culture and Milton Keynes Islamic Art and Culture. Offerings included Riding a Donkey Backwards, Rumi Tales, 1001 Stories, House of Wisdom in the Golden Age of Islam, Multifaith Stories, Muslim Nativity and Muslim Heritage Stories.
“I just wanted to share that the wonderful performance we attended at Stockwood Discovery centre sparked off my girls to perform their much loved grufffalo story play - JzkAllah Khayr for your wonderful story telling session on trees.” – mamateachesme
(Instagram Luton Muslim Homeschooling Group 16.7k followers) on Stories from the Trees, Multifaith Stories on the environment
“Thank you once again for your input. Michael of Council of World Mission was very impressed by you which is not a surprise. He will be keen in the future to explore further avenues of involving you at some other national/international platforms …” – David Jonathan, Luton Council of Faiths & Grassroots on Building Life-flourishing Communities
Page 3
**The Khayaal Theatre Company Trustees Annual Report**
"Thank you once again for taking the time to visit and for giving these pupils something which I think is a lifetime experience – by bringing engaging and Islamic theatre to school. The performance and workshops were brilliant and I can’t thank you enough …” – Hannah Malik, Preston Girls Muslim High on Muslim Heritage Stories
“Atheist household here (raised Muslim and Christian) - very much enjoyed this and value the perspective. Nice to get multiple perspectives for our child.” – Atheist on Muslim Nativity
It’s a great production and she is a wonderful storyteller! It takes a real gift to keep attention with only your person and your voice. I think we could learn something of telling the story contextually from this. It was brilliant how it wove contemporary themes (and Christmas music) into the story (“Chestnuts roasting on an altar fire...”); poverty, injustice. And the haunting use of the melody of “O Come O Come Emmanuel, but contextually changed to an Islamic theme.” – Christian on Muslim Nativity
We began 2022 excited by the prospects of our first full calendar year of normal physical touring of Theatre-without-Walls offerings after the pandemic and reaching the incredible milestone of 25 years of service. The 7-month period leading up until our FYE 31st July 2022 proved very busy indeed as we received a surge in demand as both new and existing multisector host partners requested to work with us to reconnect and re-socialise their communities. As a result, output over this period actually surpassed that of the pre-pandemic year of 2019 by 29% in relation to events and by 40% in relation to performance/workshop units delivered. 50% of our host partners were new over the period leading us to work for the first time in Northern Ireland with Sole Purpose Productions as they, like us, were celebrating their 25th anniversary. We were also thrilled to work for the first time with both Cambridge Central Mosque and Cambridge Muslim College. Our artistic collaboration with producer Farokh Marvasti and Eurasia Symphony Orchestra on the stupendous Gathering of the Birds Concert at Central Westminster Hall saw us revisit on a large scale the literary subject of our 1998 debut production, Conference of the Birds, by the Persian Sufi apothecary and sage Fariduddin Attar. Approximately 800 people attended this event, most of whom were of Iranian/Persian heritage.
Other highlights of the Jan-Jul 2022 period included a sell-out third partnership event with Oxford University Islamic Society, a near capacity second engagement with Sufi Festival in Glasgow and a sell-out fifth engagement with the Compass Network at Norton Rose Fulbright in London. We were also fortunate to deliver a co-creational 5-week residency in partnership with Faiths Forum for London and Bilal Education in Romford, E. London during which we worked with 20 young people of Swahili/East African heritage to explore, develop and perform Swahili folktales for their communities supported by The Platinum Jubilee Fund. We ended the year contributing to our local Denbigh High School’s Enrichment Week with interactive performances of wisdom tales from E. Africa, Iraq, Iran, China and Rumi for 450 pupils over two days.
Page 4
**The Khayaal Theatre Company Trustees Annual Report**
2021-2022 Facts & Figures
Physical Output
Events: 49 Physical Performances & Workshops (units): 79 Multi-Sector Host Partners: 44 Local Authorities Reached: 25 Live Audiences/Beneficiaries: 7,600 (30% of potential audience) Average Lead Time (from request to delivery): 7 weeks Artists: 10
Sectors: Education, Academia, Culture, Community, Corporate, Charity, Local Government, Faith/Interfaith Requests Logged: 146 New Partners/Requests: 84 Repeat Partners/Requests: 62 Estimated Potential Physical Audience: 25,000
Digital Output
## (1)
Hosted Online Performances:7 Multi-Sector Host Partners: 6
Countries Reached: UK, USA, South Africa, Canada, Pakistan, Germany, Spain and beyond Digital Audiences/Beneficiaries: 1,011
Sectors: Education, Community, Faith/Interfaith, Culture, Academic and Charity
## (2)
Digital Content Offerings (Films and Audio): 14
Channels/Platforms: Facebook, Instagram, YouTube, Vimeo, Linked-In, Soundcloud, Alchemiya and Islam Channel
Digital Audiences/Beneficiaries: 100K minimum
Project offerings in order of quantity delivered:
• Muslim Heritage Stories promoting and celebrating humanitarian values from Afghanistan, Saudi Arabia, Iraq, Palestine, China, Pakistan, Iran, India, Tunisia, Bangladesh, Yemen, Mali, Nigeria, Syria, Lebanon, Somalia, Tanzania, Sierra Leone, Turkey, Syria, Uzbekistan, Andalusia, Sudan, etc. 80%
• Other: House of Wisdom in the Golden Age of Islam, Multifaith Stories, Muslim Nativity, Edhi Means Love, Riding a Donkey Backwards and Conference of the Birds 20%
Page 5
**The Khayaal Theatre Company Trustees Annual Report**
New performances and workshops researched, developed, produced and presented:
Storytelling Theatre Performances
- The Magical Pear Tree, a Taoist tale from China, 10mins, for Luton Culture
- Fruits of the Future, Now, a tale from Iran, 10mins, for Luton Culture
- Animal Lawsuit Against Humanity, a parabolic film by the Brethren of Purity, Iraq, 1min for The Big Green Week, Muslim Charities Forum
- Mulla Nasruddin Exploits x2 for Cheltenham Literature Festival, 25mins
- Aboriginal Dream Creation Myth, a tale from Australia, 7mins, for Building Life-Flourishing Communities, Grassroots and Council for World Mission
- The Tailor’s Needle, a Uyghur Tale, 15mins for Oxford University Islamic Society
- The Good Lie, a tale by Sa’adi of Iran, 5mins
- Conference of the Birds, poetry reading for Eurasia Symphony Orchestra, 20mins
- The Tree of Justice, a tale by Jalaluddin Rumi of Turkey, 15mins for Sufi Festival, Glasgow
- The Rainmaker, a tale from the Swahili, 15mins for Sufi Festival, Glasgow
- The Ropemaker, a tale from Iraq from the 1001 Nights, 18mins for Eid Stories at Norton Rose Fulbright
- Suleyman and the Ants, 7mins for the Learning Tree, Cambridge
- The Caliph and the Baker, a tale from Iraq, 17mins for Ramadan Tales at Cambridge Central Mosque
- The Suitors’ Contest, a tale by Fariduddin Attar, 15mins for Sadiq Party, Luton
## Total of 180mins or 3hrs of new offerings
## Drama and Storytelling Training Workshops
- •Storytelling in Education, Workshop for Teachers, 1hr for Al-Bayyinah Supplementary School, St Albans
- •Ramadan Workshops for Kids Corner at Cambridge Central Mosque, 2hrs
- •Swahili Stories workshops x5 for young people at Bilal Education, 10hrs
- •We Tell Beautiful Stories, Workshop for Imams and Muslim Community leaders, 3hrs for Mosaic Leadership Programme, The Prince’s Trust and Randeree Charitable Trust
- •Drama and Storytelling Workshops x9 for Learning Tree Cambridge, 27hours
## Total of 43hrs of new offerings
Page 6
**The Khayaal Theatre Company Trustees Annual Report**
Developments in the Wider Work of Khayaal 2021-2022
• Eleanor Martin, our Associate Director advanced the cultural and artistic advocacy of Khayaal by giving a presentation at the University of Cambridge’s Faculty of Education as part of a 3-day workshop on Muslim Women in Education through 24-26th September 2021.
• Luqman Ali, our Artistic Director and CEO, continued to serve as an Advisor/Trustee Director at Amal (www.amal.org.uk). He initially served as the founding convening advisor of the organisation in 2016 and became a Trustee Director in 2020.
• We continued to support students and academics in undergraduate and postgraduate education at academic institutions with their research on Islam and Muslim-related theatre, drama, literature, art and culture including students and faculty at Warwick University, City University, Tufts University USA, University of Manchester, University of Exeter and University of Oxford.
• We continued to leverage our expertise, experience and accrued cultural capital to provide development support and consultancy to both emerging and experienced Muslim artists and arts organisations e.g. Mimar, Birmingham and Alchemy Arts, Manchester.
• We commissioned the acclaimed sculptor and geometer, Adam Williamson, to design and hand carve a custom folding backdrop screen from English oak combining Islamic architectural design features from Andalusia and Rajasthan to serve as the centrepiece of our Theatre-without-Walls touring set.
- We launched a monthly 3-session drama and storytelling academy for 35 children aged 3-15 in Cambridge in partnership with the Learning Tree in September 2021.
- Our work attracted press and media coverage from Islam Channel, Luton Town, Herts Advertiser, This Is Local London and The Alchemiya Journal.
• We continued to provide publicity support to Islam-Muslim related theatre productions including Rumi, The Musical, London Coliseum; Makrooh, Soho Theatre; Mohand and Peter, Southwark Playhouse; and Where Two Oceans Meet, Birmingham.
Page 7
## **The Khayaal Theatre Company Trustees Annual Report**
• We continued to advocate for justice and equity in the UK cultural sector for BAME audiences, artists, cultural practitioners and cultural producers in relation to socio-cultural opportunities, recognition, access to public space, funding and representation. Interlocutors on these issues included Arts Council England, Esmee Fairbairn Foundation, Paul Hamlyn Foundation, National Lottery Heritage Fund and Amal. Despite public acknowledgements of structural injustice and inequity in the sector and the formulation of new funding policies to address these issues on the part of funders and development agencies in the wake of George Floyd, Windrush and the disproportionate impact of Covid on minority communities, we continued to experience exclusion and a lack of understanding of the society-wide inequalities and disparities that stifle the aspirations of minority cultural actors. These include but are not limited to unjustifiably high thresholds and inflated expectations on the part of funders when it comes to scale of operation, impact and turnover that can only be based on the erroneous assumption that minority cultural producers benefit from equal access to resources and opportunities and a level playing field. By evidencing the wide socio-economic and socio-cultural disparities that disadvantage BAME communities when it comes to average household wealth, employment prospects, physical and mental health outcomes, acceptance and belonging and multiple deprivation, we endeavoured to convince our interlocutors that real equity means calibrating threshold and expectation criteria for support to the realities of the lived experience of minorities in the round. For example, when the average household wealth of a white British family (£314K) is ninefold that of a black African family (£34K), it is manifestly clear that the socio-economic barriers to socio-cultural inclusion and stake-holding where the arts are concerned are in no way comparable.
Monitoring & Evaluation
## Company
•Overall evaluation and risk analysis of the company’s activities over the year using internal measurements and indicators and assessment of the satisfaction of staff, volunteers, partners and beneficiaries resulted in the following key findings:
•High levels of satisfaction with Khayaal’s products and services both quantitatively and qualitatively relative to human, material and financial resources at our disposal.
•Continuous up-skilling and professional development critical to improving quality and generating innovation and creativity.
•More stable and longer-term financial investment critical to growth and realisation of potential.
•Challenges presented by impact of pandemic and cost-of-living crisis will need to be met with creative and entrepreneurial ingenuity and a highly adaptive business model.
Page 8
**The Khayaal Theatre Company Trustees Annual Report**
Performances & Workshops
•Our ongoing evaluation of audiences’ and partners’ responses to our original adaptations of humanitarian values tales and stories from Muslim and multifaith literature led to the following key findings:
•Muslim audiences respond to our work with an increase feeling of belonging, pride and heightened aspiration, all of which contribute to greater awareness of and confidence in the inclusive resources within their cultural traditions that encourage integration and foster contributory citizenship within wider society.
•Audiences from other traditions, both faith and secular, respond to our work with high levels of appreciation and gratitude for the opportunity to experience the aesthetics, wisdom, humour and humanity of Muslim cultures in performance made accessible by our work.
•Both audiences express high levels of commendation and appreciation for the opportunity for intercultural dialogue, engagement and understanding within one of Britain’s most important socio-cultural institutions and art forms.
## **FINANCIAL REVIEW**
During the year under review the charity received unrestricted income of £158,422 (2021: £147,106) and restricted income of £18,333 (2021: £16,666) and had an expenditure of £126,592 (2021: £139,736) and £10,029 (2021: £16,235) for unrestricted and restricted respectively. At the Balance Sheet date the charity held unrestricted funds of £91,001 (202: £59,170) and restricted funds of £8,736 (2021: £431) .
The Trustee Directors have established a reserves policy that holds that unrestricted funds equivalent to a minimum of 12 weeks of the last complete financial year’s turnover be held by the theatre company to cover current liabilities, commitments and activities/operations for three calendar months. For the current year, this equates to £29,214.
The purpose of this policy is to ensure that Khayaal TC is able to act in the interests of its charitable purposes and its beneficiaries, as well as protecting and safeguarding its assets and ensuring that due diligence is taken in complying with current legislation and good practice guidance.
The trustees have given due consideration to the ability of the Charity to continue as a going concern. Due to the continued support the charity receives from its donors and the public, the trustees are satisfied that the going concern basis remains appropriate in preparing these financial statements. Furthermore, the charity believes that the level of unrestricted funds held remains sufficient to support the activities of the charity in the foreseeable future.
Financial and risk management objectives and policies
Risk mitigation has been central to the organisational management processes that have ensured that we have alternately survived and flourished for over two decades. We manage and mitigate risk by maintaining a high level of industry awareness and forecasting. This is achieved by monitoring developments in our sector and related sectors in the media and public forums. We also review our organisational SWOT analysis on a regular basis taking into consideration market trends here and abroad affording us continuous tracking across analysis factors. Where financial risk is concerned, we have primarily employed the combined strengths of scalability, commitment, ingenuity and passion in order to adapt to changing circumstances and transform challenges into opportunities. Our core staff and board of directors share responsibility for risk mitigation.
Page 9
**The Khayaal Theatre Company Trustees Annual Report**
## Principal funding source
Over the year 2021-22, our funding came from a mix of sources as follows:
• Grants 75% (Amal, Bedfordshire and Luton Charitable Foundation, DCMS/Arts Council of England, Garfield Weston Foundation, HMRC JRS, National Lottery Community Fund and Safera Foundation)
- Donations & Gift Aid 10% (9% in 20-21)
- Income from sales and services 15% (6.5% in 20-21 due to impact of pandemic / 34% in18-19)
• Restricted Fund Grants: (1) Amal for Theatre-without-Walls project (2) Bedfordshire and Luton Community Foundation's Community Recovery Fund for Khayaal 25 Luton project.
• In-Kind support and resources in terms of underpaid core staff time relative to multidisciplinary expertise and experience, volunteer time, host partners’ contributions of performance spaces, digital channels, staff time, publicity, etc. have been quantified and valued monetarily as equivalent to at least 50% of cash turnover at £88K
## **PLANS FOR FUTURE PERIODS**
Future plans for 2022-2023
•We will continue laying the foundations for continuous drama academy provision integrating drama, character virtues and Muslim literature beginning with monthly drama academies for mainly but not solely Muslim children aged 5-15 in Cambridge, Luton and NW London. Once we have established the monthly provision, we will then work to expand to fortnightly and later weekly provision. The Cambridge academy has been up and running for 18 months and the Luton academy for 6 months to date, so this work is well underway.
•Delivering 50-60 physical Theatre-without-Walls performance events nationally with multi-sector partners.
•Leveraging our accrued cultural capital and longstanding, privileged partnerships with BAME/Muslim communities in order to increase our grant funding from public and private funders including trusts/foundations.
•Redeveloping our website and refreshing and enriching our branding across our social media channels.
•Continue work on our 3-year (2021-2024) funded PhD project on British Muslim Engagement with Theatre in partnership with Manchester Metropolitan University, the Arts and Humanities Research Council and North West Consortium Doctoral Training Partnership. The project will be delivered by our successful applicant doctoral student Serena Slack-Robins who returns to Khayaal after working with us 23 years ago on our debut production, Conference of the Birds.
•We will work with emerging partner ETHOX, Oxford University to develop a proposal and fundraise for an applied theatre project to explore attitudes to death and dying in British Muslim communities with a focus on the relationships between these communities and providers of palliative end-of-life care.
Page 10
**The Khayaal Theatre Company Trustees Annual Report**
•We will work with existing partner, Alchemy Arts, to deliver the theatre strand of the inaugural Muslim Artists Academy in Manchester comprising 6 weekly workshops for Muslims wishing to develop skills in drama and theatre. The project is supported by Arts Council England.
•We will work with new partner, Birmingham Repertory Theatre, to develop a long-term working relationship in order to serve the socio-cultural and arts education needs of the largest Muslim community in the UK.
•We will work to re-track our developing partnership with new partner, The Little Angel in Islington, with a view to co-producing a children’s theatre adaptation of our award-winning ‘Riding a Donkey Backwards’ book. This work began in 2018-19 but was put into suspended animation by the pandemic.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).
Signed on behalf of the board
F. Qureshi Trustee 17 March 2023
Page 11
**The Khayaal Theatre Company Independent Examiners Report**
## **Independent Examiner's Report to the trustees of The Khayaal Theatre Company**
I report to the charity trustees on my examination of the financial statements of The Khayaal Theatre Company for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that:
- accounting records were not kept in accordance with section 386 of the 2006 Act ; or
- the financial statements do not accord with those records; or
- the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
- the financial statements have not been prepared in accordance with the Charities SORP (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sajjad Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF 17 March 2023
Page 12
**The Khayaal Theatre Company Statement of Financial Activities**
## **for the year ended 31 July 2022**
|**Notes**
**Income and endowments**
**from:**
Donations and legacies
4
Charitable activities
5
Investments
6
Other
7
**Total**
**Expenditure on:**
Other
8
**Total**
Net gains on investments
**Net income**
9
Transfers between funds
**Net income before other**
**gains/(losses)**
**Other gains and losses**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
36,932
111,250
31
10,209|**Restricted**
**funds**
**2022**
**£**
-
18,333
-
-|**Total funds**
**2022**
**£**
36,932
129,583
31
10,209|**Total funds**
**2021**
**£**
25,757
138,015
-
-|
|---|---|---|---|---|
||158,422
126,592|18,333
10,029|176,755
136,620|163,772
155,971|
||126,592
-|10,029
-|136,620
-|155,971
-|
||31,831
-|8,305
-|40,135
-|7,801
-|
||31,831|8,305|40,135|7,801|
||31,831
59,170|8,305
431|40,135
59,601|7,801
51,800|
||91,001|8,736|99,736|59,601|
Page 13
**The Khayaal Theatre Company Summary Income and Expenditure Account**
## **for the year ended 31 July 2022**
|Income
Interest and investment income
**Gross income for the year**
Expenditure
Depreciation and charges for
impairment of fixed assets
**Total expenditure for the year**
Net income before tax for the year
**Net income for the year**|**2022**
**£**
176,724
31
176,755
133,458
3,162
136,620
40,135
40,135|**2021**
**£**
163,772
-|
|---|---|---|
|||163,772|
|||153,209
2,762|
|||155,971|
|||7,801|
|||7,801|
Page 14
**The Khayaal Theatre Company Balance Sheet**
## **at 31 July 2022**
|**Company No.**
**03597083**
**Notes**
**2022**
**£**
**Fixed assets**
Tangible assets
11
10,244
10,244
**Current assets**
Cash at bank and in hand
92,578
92,578
**Creditors:**Amount falling due within one year
12
(3,086)
**Net current assets**
89,492
**Total assets less current liabilities**
99,736
**Net assets excluding pension asset or liability**
99,736
**Total net assets**
99,736
**The funds of the charity**
**Restricted funds**
13
Restricted income funds
8,736
8,736
**Unrestricted funds**
13
General funds
91,001
91,001
**Reserves**
13
**Total funds**
99,736|**2021**
**£**
11,647|
|---|---|
||11,647
49,985|
||49,985
(2,031)|
||47,954
59,601|
||59,601|
||59,601|
||431|
||431
59,170|
||59,170|
||59,601|
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 31 July 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 17 March 2023
And signed on its behalf by:
F. Qureshi Trustee 17 March 2023
Page 15
**The Khayaal Theatre Company Statement of Cash flows for the year ended 31 July 2022**
|**Cash flows from operating activities**
**Net income per Statement of Financial Activities**
**Adjustments for:**
Depreciation of property, plant and equipment
Dividends, interest and rents from investments
Other gains/losses
Increase/(Decrease) in trade and other payables
**Net cash provided by operating activities**
**Cash flows from investing activities**
Payments for property, plant and equipment
Dividends, interest and rents from investments
**Net cash from/(used in) investing activities**
**Net cash from financing activities**
**Net increase/(decrease) in cash and cash equivalents**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**
**Components of cash and cash equivalents**
Cash and bank balances|**2022**
**£**
40,135
3,162
(10,240)
-
1,055
34,112
(1,759)
10,240
8,481
-
42,593
49,985
92,578
92,578
92,578|**2021**
**£**
7,801
2,762
-
-
(3,969)|
|---|---|---|
|||6,594
(13,744)
-|
|||(13,744)|
||||
|||-|
||||
|||(7,150)|
|||57,135|
|||49,985|
||||
|||49,985|
||||
|||49,985|
Page 16
**The Khayaal Theatre Company Notes to the Accounts**
## **for the year ended 31 July 2022**
- 1 **Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Change in basis of accounting or to previous accounts**
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
## **Fund accounting**
- Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
- Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
- Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
## **Income**
- Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
- Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
- Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 17
**The Khayaal Theatre Company Notes to the Accounts**
## **Expenditure**
- Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
- Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
- Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
- Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
- Other expenditure These are support costs not allocated to a particular activity.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Tangible fixed assets and depreciation**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Plant & Machiney 25% Reducing balance Motor Vehicle 25% Reducing balance
## **Trade and other debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
## **Trade and other creditors**
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 18
**The Khayaal Theatre Company Notes to the Accounts**
## **Pension costs**
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
## **Receipt of donated goods, facilities and services**
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
## 2 **Company status**
The company is a private company limited by guarantee and consequently does not have share capital.
## 3 **Statement of Financial Activities - prior year**
|**Income and endowments from:**
Donations and legacies
Charitable activities
**Total**
**Expenditure on:**
Other
**Total**
**Net income**
**Net income before other**
**gains/(losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
25,757
121,349
147,106
139,736
139,736
7,370
7,370
7,370
51,800
59,170|**Restricted**
**funds**
**2021**
**£**
-
16,666
16,666
16,235
16,235
431
431
431
-
431|**Total funds**
**2021**
**£**
25,757
138,015|
|---|---|---|---|
||||163,772
155,971|
||||155,971|
||||7,801|
||||7,801|
||||7,801
51,800|
||||59,601|
Page 19
**The Khayaal Theatre Company Notes to the Accounts**
4 **Income from donations and legacies**
|Donations
Fees receivable
Friends' subscriptions
5
**Income from charitable activities**
Grants
6
**Income from investments**
Interest income
7
**Other income**
Gift Aid
JRS Grant
8
**Other expenditure**
Employee costs
Motor and travel costs
Amortisation, depreciation,
impairment, profit/loss on
disposal of fixed assets
General administrative costs
Legal and professional costs|**Unrestricted**
**£**
111,250
111,250
**Unrestricted**
**£**
40,544
16,416
3,054
45,668
20,910
126,592|**Unrestricted**
**£**
8,244
26,563
2,125
36,932
**Restricted**
**£**
18,333
18,333
**Unrestricted**
**£**
31
31
**Unrestricted**
**£**
7,760
2,449
10,209|**Total**
**2022**
**£**
8,244
26,563
2,125
36,932
**Total**
**2022**
**£**
129,583
129,583
**Total**
**2022**
**£**
31
31
**Total**
**2022**
**£**
7,760
2,449
10,209|**Total**
**2021**
**£**
13,227
10,790
1,740|
|---|---|---|---|---|
|||||25,757|
|||||**Total**
**2021**
**£**
138,015|
|||||138,015|
|||||**Total**
**2021**
**£**
-|
|||||-|
|||||**Total**
**2021**
**£**
-
-|
|||||-|
||||||
|||**Restricted**
**£**
3,457
656
108
3,855
1,953
10,029|**Total**
**2022**
**£**
44,000
17,072
3,162
49,523
22,863
136,620|**Total**
**2021**
**£**
40,571
7,659
2,762
63,387
41,592|
|||||155,971|
Page 20
**The Khayaal Theatre Company Notes to the Accounts**
## 9 **Net income before transfers**
|9
**Net income before transfers**|||
|---|---|---|
|**2022**
This is stated after charging:
**£**
Depreciation of owned fixed assets
3,162
Independent Examiner's fee
1,322
10 **Staff costs**
**2022**
Salaries and wages
43,942
43,942
No employee received emoluments in excess of £60,000.
The average monthly number of employees during the year was as follows:
**2022**
**Number**
Administration and
production
5
5
11 **Tangible fixed assets**
**Plant &**
**Machiney**
**£**
**Cost or revaluation**
At 1 August 2021
15,070
Additions
1,759
At 31 July 2022
16,829
**Depreciation and**
**impairment**
At 1 August 2021
3,913
Depreciation charge for the
year
2,998
At 31 July 2022
6,911
**Net book values**
At 31 July 2022
9,918
At 31 July 2021
11,157
12 **Creditors:**
amounts falling due within one year
**2022**
**£**
Other creditors
3,086
3,086|**Motor**
**Vehicle**
**£**
18,716
-
18,716
18,226
164
18,390
326
490|**2021**
**£**
2,762
1,050
**2021**
40,455|
|||40,455|
|||**2021**
**Number**
4|
|||4|
|||**Total**
**£**
33,786
1,759|
|||35,545|
|||22,139
3,162|
|||25,301|
|||10,244|
|||11,647|
|||**2021**
**£**
2,031|
|||2,031|
Page 21
**The Khayaal Theatre Company Notes to the Accounts**
## 13 **Movement in funds**
|**At 1 August**
**2021**
**Restricted funds:**
**Restricted income funds:**
Amal - Said Foundation
431
_Total_
431
**Unrestricted funds:**
**General funds**
59,170
**Total funds**
59,601
Purposes and restrictions in relation to the funds:
Restricted funds:
Amal - Said Foundation
14 **Analysis of net assets between funds**
Fixed assets
Net current assets
15 **Reconciliation of net debt**
Cash and cash equivalents
Net debt|**Incoming**
**resources**
**(including**
**other**
**gains/losses)**
**£**
18,333
18,333
158,422
176,755|**Resources**
**expended**
**£**
(10,029)
(10,029)
(126,592)
(136,620)|**At 31 July**
**2022**
**£**
8,736|
|---|---|---|---|
||||8,736|
||||91,001|
||||99,736|
|||||
|||||
|||||
||**Unrestricted**
**funds**
**£**
9,922
89,492
99,414
**At 1 August**
**2021**
**£**|**Restricted**
**funds**
**£**
322
-
322
**Cash flows**
**£**|**Total**
**£**
10,244
89,492|
||||99,736|
||||**At 31 July**
**2022**
**£**|
||49,985|42,593|92,578|
||49,985
49,985|42,593
42,593|92,578|
||||92,578|
|||||
|16 **Related party disclosures**
**_Controlling party_**||||
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 22
**The Khayaal Theatre Company Detailed Statement of Financial Activities**
## **for the year ended 31 July 2022**
|**Income and endowments from:**
Donations and legacies
Donations
Fees receivable
Friends' subscriptions
Charitable activities
Grants
Investments
Interest income
Other
Gift Aid
JRS Grant
**Total income and endowments**
**Expenditure on:**
Employee costs
Salaries/wages
Staff training
Motor and travel costs
Travel and subsistence
General administrative costs,
including depreciation and
amortisation
Depreciation of Plant & Machiney
Depreciation of Motor Vehicle
Equipment expensed
Equipment leasing and hire
charges
General insurances
Information and publications
Stationery and printing
Subscriptions
Sundry expenses
Telephone, fax and broadband
Venue hire|**Unrestricte**
**d funds**
**2022**
**£**
8,244
26,563
2,125
36,932
111,250
111,250
31
31
7,760
2,449
10,209
158,422
40,544
-
40,544
16,416
16,416
2,890
164
950
1,795
1,579
1,477
4,641
279
1,077
1,055
32,817|**Restricted**
**funds**
**2022**
**£**
-
-
-
-
18,333
18,333
-
-
-
-
-
18,333
3,399
58
3,457
656
656
108
-
116
1,428
155
121
-
-
232
68
1,737|**Total funds**
**2022**
**£**
8,244
26,563
2,125
36,932
129,583
129,583
31
31
7,760
2,449
10,209
176,755
43,942
58
44,000
17,072
17,072
2,998
164
1,066
3,223
1,733
1,597
4,641
279
1,308
1,122
34,554|**Total funds**
**2021**
**£**
13,227
10,790
1,740|
|---|---|---|---|---|
|||||25,757|
|||||138,015|
|||||138,015|
|||||-|
|||||-|
|||||-
-|
|||||-|
|||||163,772
40,455
116|
|||||40,571|
|||||7,659|
|||||7,659|
|||||2,598
164
9,036
1,388
2,149
1,877
9,538
884
1,765
1,915
34,835|
Page 23
## **The Khayaal Theatre Company Detailed Statement of Financial Activities**
|Legal and professional costs
Audit/Independent examination
fees
Consultancy fees
Other legal and professional
costs
**Total of expenditure of other costs**
**Total expenditure**
Net gains on investments
**Net income**
**Net income before other**
**gains/(losses)**
Other Gains
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|48,722
1,322
12,570
7,018
20,910
126,592
126,592
-
31,831
31,831
-
31,831
59,170
91,001|3,963
58
1,895
-
1,953
10,029
10,029
-
8,305
8,305
-
8,305
431
8,736|52,685
1,380
14,465
7,018
22,863
136,620
136,620
-
40,135
40,135
-
40,135
59,601
99,736|66,149|
|---|---|---|---|---|
|||||1,050
40,442
100|
|||||41,592|
||||||
|||||155,971|
|||||155,971
-|
|||||7,801|
|||||7,801
-|
|||||7,801|
|||||51,800|
|||||59,601|
Page 24